6 Common pension objectives | Aging

Setting goals can help you determine the best way to use your time and resources when you retire. With no goal in mind, you may start to feel adrift after several months with no plan or sense of routine. Setting goals you hope to achieve can help you stay on track with your retirement planning. You will have something to look forward to and be ready to enjoy new opportunities in retirement.

Some common retirement goals include:

  1. Establish a retirement budget.
  2. Plan a landmark event.
  3. Prioritize well-being.
  4. Discover new interests.
  5. Rethink your residence.
  6. Leave a legacy.

1. Set up a retirement budget

Many people and couples feel comfortable knowing how much they will need each month in retirement. “Having a future vision helps guide our behavior to support our current goals,” says Kurt Heineman, a financial planner at Vision Casting Financial Planning in Spokane, Washington. A starting point involves considering what you want to do and when you want to retire. You can then speak to a consultant to see how much you need to set aside. “Adding numerical values ​​to goals makes them concrete and achievable,” says Heineman. If some of your early lifestyle options don’t fit into your retirement budget, you can rework the factors to cut costs and live within your means.

2. Plan a landmark event

Arrangements are often made for a meeting to kick off retirement. Some individuals take the concept further and map out an experience to mark the transition from work to retirement. “A common goal that pre-retirees say they would like to have in place for retirement is a luxury trip done the year or year after retirement,” says Jim Eutsler, partner and wealth advisor at HCM Wealth Advisors in Cincinnati. , Ohio. “The benefit is mainly intangible as it gives the individual something to look forward to continuously.”

A luxurious and freedom-filled event could mean different things to different people. Some people might expect a three month stay in Europe. Others might rent an RV for a month and travel within their state. Retirees could choose to drive across the country and travel at their own pace. Regardless of the choice, the financial factors will need to be weighed and accounted for in advance.

3. Prioritize well-being

Setting your own schedules and diet gives you the opportunity to focus on fitness. “Our goal is to live as best we can for as long as possible, so we focus on maximizing our health,” says Edd Staton, co-author of “Retirement Reimagined”. He and his wife Cynthia eat a balanced and nutritious diet, exercise for one hour a day, and sleep about nine hours each night. They also actively seek ways to avoid stress. “The immediate benefits include no prescription drugs and a great feeling most days,” says Staton. “We strive in the long run to avoid spending the hundreds of thousands of dollars that Americans are expected to need on health care in old age.”

4. Discover new interests

Whether it’s traveling in an RV, gardening club, art class, or learning a new language, workers often dream of doing something different in retirement. Waiting can serve as a motivation to save each month. It can also help retirees stay positive and feel engaged. To avoid committing to a large purchase or a tight schedule that you may want to change later, try the activities you are contemplating before walking away from the workplace. For example, you might take up volunteer work at a senior center and find that while you enjoy helping, you’d rather be in an environment with children, such as a charity dedicated to supporting families.

5. Rethink residences

For many people, the idea of ​​paying off a mortgage through retirement is tempting. Some up-and-coming retirees are scaling back into a smaller home that needs less maintenance. However, other retirees buy a second place in a desirable position. “This could involve having a home in a northern and southern climate so they can travel back and forth as they please,” says Eutsler. It could also be buying a vacation home, such as a lakeside cabin, which is rented when there aren’t any. “The goal is often to put themselves in a place, physically and mentally, where they feel more comfortable and able to enjoy the years after work,” says Eutsler.

6. Leave a legacy

If you have family members including children and grandchildren, you may be interested in passing on a portion of your savings to subsequent generations. Some retirees are passionate about certain causes and want to leave an amount to charity. “How you are remembered by loved ones and your impact on the world becomes important later in life,” says Noah Schwab, a financial planner at Stewardship Concepts Financial Services in Spokane, Washington. To create an inheritance, you can consult with your financial advisor to discuss estate planning. “Using strategies such as a donor-recommended fund can allow retirees to save on taxes and achieve their charitable goals at the same time,” says Schwab.

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